Financial supervision is government supervision of financial institutions by regulators. The objective is to uphold existing regulations for the financial sector and ultimately to maintain stability of financial markets.
Aims of supervision
The specific aims of financial regulators are usually:
- To minimise financial loss of depositors in banks or policy holders of insurance companies
- To enforce applicable laws
- To prosecute cases of market misconduct, such as insider trading
- To license providers of financial services
Authority by Country
The Australian Prudential Regulation Authority (APRA) supervises banks and insurers. Australian Securities and Investments Commission (ASIC) is responsible for enforcing financial services and corporations laws.
See also
External links